Brief day in the sun for jobs growth

Glenda Kwek

A SURPRISE fall in the jobless rate for November has eased expectations for another Reserve Bank rate cut in February.

But the statistic does not change the softening employment outlook for 2013 as the economy battles a mining slowdown, analysts say.

Almost 14,000 jobs were added last month and the unemployment rate fell to 5.2 per cent, from 5.4 per cent in October. This was due in part to a decline in the participation rate - the number of people working or actively seeking work - to near six-year lows, from 65.2 per cent to 65.1 per cent, according to the Bureau of Statistics.

''All told, this is a soft report on the labour market, and one that should raise concerns for 2013, a year in which the mining investment boom is set to peak,'' Westpac economist Elliot Clarke said.

''The positive tone of the November report ends at the headline figures. Delving into the detail, we see that the labour market is struggling to mark time.''

Total employment rose to 11.5 million, as unemployment decreased by 16,300 to 637,400.

CommSec economist Savanth Sebastian said Australia's economy was holding up well despite global headwinds, but not everything was smooth sailing.

While employment had grown, forward-looking indicators such as job advertisements - with the ANZ's job ads series falling for an eighth straight month in November - suggested job growth was expected to flatline in coming months, he said.

Workplace Relations Minister Bill Shorten said the figures were an ''outstanding achievement'' and pointed out that 843,800 jobs, about 460 jobs a day, had been added since Labor took office in 2007.

But he acknowledged that the government ''cannot be complacent for a moment'' and would continue to work towards easing cost-of-living demands. ''The Gillard government remains acutely aware that the conditions remain patchy in some sectors and some Australian businesses and families are under pressure.''

The positivity in the employment numbers contrasted with the recent slew of job losses at building products maker Boral, Channel Ten, and potentially at struggling food company Rosella.

Michael Rafferty, of the University of Sydney's Workplace Research Centre, said the labour force figures did not reflect the uncertainty and lack of confidence experienced by Australian workers.

''I think that what's happening is that people are pessimistic despite the reasonably buoyant labour market and the reason is that people are finding it hard to get by. And I think they are worried that if they were to become unemployed, lots of things could unravel for them,'' he said.

''There's a genuine fear because people are struggling to make ends meet. The labour market aggregate figures are missing that story that people are feeling more precarious.''